• HUF

Dear sir,

if huf as a propritor in a buisness (firm) , the bank could finance the firm ?
Asked 5 years ago in Business Law

3 answers received in 30 minutes.

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15 Answers

Yes,Definitely definitely it is possible through KARTA or MANAGER of HUF .

Can you Please elaborate your HUF or its contents of Agreement or deed then I would more happily provide you some vital information for the process of loan on behalf of HUF to Bank.

Ramesh Pandey
Advocate, Mumbai
2541 Answers
8 Consultations

Yes, if you show IT return filing to bank of your business of last 3 year. Your firm can open OD account accordingly.

Ganesh Kadam
Advocate, Pune
13008 Answers
267 Consultations

In cases of loan to HUF, property must be owned by HUF and loan must be in the name of HUF and Karta & all coparceners will be co-borrower in their individual capacity. No Objection Certificate from all coparceners to mortgage the property is required.

Ajay Sethi
Advocate, Mumbai
99791 Answers
8147 Consultations

- Yes, an HUF can take loan after mortgaging property with the bank . 

- Further, all the HUF Fixed Deposit holders are also eligible to avail a loan against their term deposit.

- Further, all members of the family will have to sign and agree for the same.

Mohammed Shahzad
Advocate, Delhi
15814 Answers
242 Consultations

Yes it can finance

Prashant Nayak
Advocate, Mumbai
34526 Answers
249 Consultations

Please specify your question.

Bank will provide loan on proper security of HUF mortgage to the bank.

Yogendra Singh Rajawat
Advocate, Jaipur
23082 Answers
31 Consultations

Dear Sir,

The HUF has no proprietor, rather it is a Karta and you may avail the finance facility as per law. 

Ganesh Singh
Advocate, New Delhi
7169 Answers
16 Consultations

1. HUF is a "legal entity" having multiple persons as its members and CANNOT be a Proprietor Business firm.

2. HUF shall have its own independent PAN card for income tax filing and it cannot be linked to individual members of HUF.

3. Banks can finance HUF activities, PROVIDED "ALL" the HUF holders pass appropriate resolution for the same.

Hemant Agarwal
Advocate, Mumbai
5612 Answers
25 Consultations

Dear Sir,

Yes the bank can finance.

The loan would be taken by Karta in his own name or HUF's name.

A NOC has to be obtained from all Coparceners for any collateral security/mortgage.

Best wishes.

Agam Sharma
Advocate, New Delhi
617 Answers
6 Consultations

Yes, Bank can finance HUF, provided the Kartha alongwith all co-owners should comply with the formalities of signing the agreement / surety etc. 

S Srinivasa Prasad
Advocate, Hyderabad
2876 Answers
9 Consultations

Yes

Rahul Jatain
Advocate, Rohtak
5365 Answers
4 Consultations

Since HUF is one person as per Income Tax Act, a proprietor of a business can be an individual or a HUF. A proprietorship concern is not governed by any specific law as such, and therefore there is no bar on HUF becoming a proprietor of any concern.

Therefore there is n o legal infirmity in sanctioning loan by bank to the firm.

 

T Kalaiselvan
Advocate, Vellore
89992 Answers
2495 Consultations

Yes, an HUF can avail loan against a Fixed Deposit. This FD can be in name of HUF itself or any member of HUF. 

Mohammed Mujeeb
Advocate, Hyderabad
19325 Answers
32 Consultations

1. Yes bank can finance the HUF firm.

2. You should contact loan branch of some bank to get best options for HUF business loan. 

Mohit Kapoor
Advocate, Rohtak
10686 Answers
7 Consultations

Yes the bank can finance the firm in case the firm is registered in the HUF's name.

Rahul Mishra
Advocate, Lucknow
14114 Answers
65 Consultations

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